Posted on 09/27/2008 4:10:18 PM PDT by sirchtruth
Clear and concise facts. Thank you WD57!
Friend of moeradtor post?
What is the root cause of this crisis?
Banks making bad loans.
“Obama was a key player in the lawsuit that started the government on a course of forcing lenders to give more loans to those who had poor credit. Lending companies were forced to come up with imaginative ways of fulfilling the quotas that were required. Sub-prime lending was born as a result. The mortgage crises was forecast by many who were able to look beyond the quota. Buycks-Roberson v. Citibank Fed. Sav. Bank”
(http://www.freerepublic.com/focus/f-news/2091975/posts)
Artificially low interest rates on vanity property with no money down!
Well, Tax-Chick, there are some people on Freep who actually testified in the Senate/House hearings on F&F, worked on Wall Street with folks like John Corzine and are really familiar with the CRA/F&F, etc. and are really well-informed. In fact, one Freeper has been quoted in IBD, Forbes, FoxNews, WSJ on the bailout, Fannie and Freddie, origins on the subprime crisis, etc.
Of course, there are uninformed people as well who offer dumb opinions. They are usually found on Daily Kos and in the Senate and House of Representatives.
Greed, pure and simple. Greed on the part of the borrowers, who thought they could get something for nothing. Greed on the part of the mortgage brokers, who wanted to keep the fees rolling in regardless of the creditworthiness of the customer. Greed on the part of the investment banks, who packaged and sold the mortgages without pricing them in properly to reflect their risk. Long and short none of the people participating in the fiasco are innocent.
Exactly what I was saying!
Whoops. I said “CAR”. I meant CRA. Now everything should be clear.
It’s not greed, silly. People are greedy when the economy expands, too. The problem was that the government distorted the market, and no one knew when they should stop lest their greed be thwarted.
It not about reading FR articles, it's about discerning them. This is exactly the kind of site where people should be posting these sort of things facts.
Sorry, I apologize. I am actually working on a subprime causes paper as we speak (or type), so I am not reading other’s opinions as carefully as I should.
Well, this freeper appreciates vanities in Gen/Chat wasteland. :)
The government didn't come up with negative amortization loans, no documentation loans, interest only loans. The government didn't force mortgage brokers to give mortgages to people 30 time greater than their income. The mortgage brokers came up with that on their own.
Greed is good.
Greed at the taxpayer’s expense is not good.
Fannie/Freddie and the Investment Banks that were their partners (e.g, Corzine) are the problem.
Also, borrowers need to receive a large chunk of the blame. Without them, there was no demand for CRA and Fannie/Freddie products.
The real sub-prime lending didn’t go haywire until around 2004 or 2005. I know this to be a fact. Now, there were sub-prime loans for as long as I can remember but they were few and far between. But prior to 2004 you had to at least be breathing to get a loan. This crazy stuff went on for about 2 years before it came to a halt.
FHA 100% loans are only ending this month. And until last March or so your credit score didn’t matter as long as your back ratio was no higher than 50%. And I’ve seen some that were approved with a back ratio over 50%. Since then and through this month your score had to be 580 or higher to get 100% financing.
I blame Clinton as much as anyone but Bush could have stopped it.
Sub-prime only getting out of hand for a few years makes me think this goes much deeper than just a sub-prime mortgage crisis. It probably is very similar to the S&L schemes of the 90’s. The properties are way too inflated in California, Florida, Las Vegas and Arizona and the mortgages are not worth the paper.
Foreclosures here in Houston are only slightly higher than normal.
An incredible combination of greed and stupidity.
Do you realize it's a gov't regulation that not only does every employee in a bank branch have to know where their booklet is on CRA, but be able to name the officer.
Anyone off the street can question a branch bank employee about this and the infomation has to be provided.
bump
I’m sure you’re very knowledgeable, whitedog57, and I hope your paper is widely read and assimilated. However, if one wishes to make good information available to the random reader - and how many of those do we get at this Right-Wing Internet Wacko forum, anyhow :-) - an unsourced, misspelled vanity post is not the way to do it. Who’s going to read all the responses in hopes of finding gold, when they could simply go to well-known good sources, such as the ones I mentioned?
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